dyeing unit

[satbir singhwahi]

dyeing unit doing cloth and garment dyeing whether subject to service tax or excise.

AI Summary

Dyeing Units for Cotton & Nylon Fabrics Classified as Manufacturing, Subject to Excise Duty Under Chapter Notes 4, Not Service Tax. A query was raised regarding whether a dyeing unit involved in cloth and garment dyeing is subject to service tax or excise duty. Two responses clarified that under Chapter Notes 4 of Chapters 52 and 54 of the Central Excise Tariff Act, 1985, dyeing of cotton and nylon fabrics is considered manufacturing, thus subject to excise duty, not service tax. Additionally, service tax is exempted under the mega exemption notification no. 25/2012.